Why does the yen trade 80? Compared to other currencies around 1

Discussion in 'Forex' started by jrlvnv, May 9, 2011.

  1. jrlvnv

    jrlvnv

    Look at the EUR/USD trade around 1.5

    Why does it take 80 yen to make 1 USD?

    What do you think would happen if yen = usd since it seems to be heading there.
     
  2. Roark

    Roark

    Many people have been asking that question for a very long time and nobody knows why. They keep shorting JPY though and keep getting burned. I supposed if JPY reaches parity with USD, the Japanese will buy the US and reorganize everything, starting with Hawaii and California.